Supply chain managemenPPT MBA 4 SEM

Supply Chain Management
BY BABASAB PATIL
4/11/2013 Babasabpatilfreepptmba.com

What Is a Supply Chain?
Flow of products and services from:
– Raw materials manufacturers
– Intermediate products manufacturers
– End product manufacturers
– Wholesalers and distributors and
– Retailers
• Connected by transportation and storage
activities
• Integrated through information, planning, and
integration activities
• Cost and service levels

Definitions
The design and management of seamless, value-added
process across organizational boundaries to meet the
real needs of the end customer
Institute for Supply Management
Managing supply and demand, sourcing raw materials
and parts, manufacturing and assembly, warehousing
and inventory tracking, order entry and order
management, distribution across all channels, and
delivery to the customer
The Supply Chain Council

Source
Supplier
Supplier
Distributor
Distributor
Retailer
End-User
Converter
Converter Consumers
Information Flow
Funds/Demand Flow
Value-Added Services
Material Flow
Reuse/Maintenance/After Sales Service Flow
SCM Definition

Channel Intermediaries
Retailer
Merchant
Wholesaler
Agents and
Brokers
A channel intermediary that
sells mainly to customers.
An institution that buys goods
from manufacturers, takes title
to goods, stores them,
and resells and ships them.
Wholesaling intermediaries who
facilitate the sale of a product by
representing channel member.

Channel Intermediaries
Retailers
Merchant
Wholesalers
Agents
and
Brokers
Take Title to Goods
Take Title to Goods
Do NOT Take Title to Goods

The SCM Network
FIGURE 1.1: The logistics network

Objective of a supply chain
• Maximize the value of supply chain (difference between the worth of the
final product to the customer and the cost of the supply chain in filling the
customer’s request)
• Increase the supply chain profitability (supply chain surplus)

The Importance of Supply Chain Management
• Dealing with uncertain environments
• Shorter product life cycles of high-technology products
– Less opportunity to accumulate historical data on customer
demand
– Wide choice of competing products makes it difficult to predict
demand
• The growth of technologies such as the Internet enable greater
collaboration between supply chain trading partners
– If you don’t do it, your competitor will
• Availability of SCM technologies on the market
– Firms have access to multiple products (e.g., SAP, Baan, Oracle, JD
Edwards) with which to integrate internal processes

Results
of
Supply Chain
Management
Focus on Innovative Solutions
Competitive with focus on
Customer Satisfaction
Synchronized Flow
Customer Value

Supply chain includes
• Material flows / Product flows
• Information flows
• Financial flows

• Supply Chain Design
• Resource Acquisition
• Long Term Planning (1 Year ++)
Supply chain
strategy
• Production/ Distribution Planning
• Resource Allocation
• Medium Term Planning (Qtrly,Monthly)
Supply chain
Planning
• Shipment Scheduling
• Resource Scheduling
• Short Term Planning (Weekly,Daily)
Supply chain
Operation
Decision Phases in Supply chain

Process view of a supply chain
1. Cycle view of a supply chain process
• Broken down into 4 Process Cycles viz..
CUSTOMER ORDER CYCLE
REPLENISHMENT CYCLE
MANUFACTURING CYCLE
PROCUREMENT CYCLE
• Each cycle consists of 6 sub processes
1 Supplier stage markets product
2 Buyer stage places the order
3 Supply stage receives the order
4 Supplier stage supplies the order
5 Buyer stage receives supply
6 Buyer returns reverse to supplies to supplier or third party
• Useful in considering operational decisions

2. Push pull view of Supply chain management
• Divided into 2 categories
1. Push Process initiated in anticipation of customer orders
2. Pull process initiated by customer order
• Push/pull view of SCM is useful when considering strategic decisions
relating to supply design

Supply chain Macro processes in a firm
Supplier relationship
management
• Source
• Negotiate
• Buy
• Design collaboration
• Supply collaboration
Internal SCM
• Strategic planning
• Demand planning
• Supply planning
• Fulfillment
• Field service
Customer relationship
management
• Market
• Price
• Sell
• Call center
• Order management

The Processes Customer Relationship Management - provides the structure for how relationships with customers
are developed & maintained, including the PSAs between the firm & its customers.
 Customer Service Management - provides the firm’s face to the customer, including management of
the PSAs, and provides a single source of customer information.
 Demand Management – provides the structure for balancing the customers’ requirements with
supply chain capabilities.
 Order Fulfillment – includes all activities necessary to define customer requirements, design the
logistics network, and fill customer orders.
 Manufacturing Flow Management - includes all activities necessary to move products through the
plants & to obtain & manage manufacturing flexibility in the supply chain.
 Supplier Relationship Management - provides the structure for how relationships with suppliers are
developed & maintained, including the PSAs between the firm & its suppliers.
 Product Development and Commercialization – provides the structure for developing and bringing to
market new products jointly with customers and suppliers.
 Returns Management – includes all activities related to returns, reverse logistics, gate keeping, &
avoidance.

Key Issues in Supply Chain Mgt.
Network Planning –
• recognize the capacity of each warehouse to
determine production requirements and inventory
levels at the vendor’s facility for each product
• develop transportation flows between these facilities
to the warehouses
• minimize total production, inventory, and
transportation costs satisfy service level
requirements?

Inventory Control –
• Where is inventory held, (supplier, warehouse,
retailer)
• how much, and why?
• Is inventory held due to uncertainty in production,
distribution or customer demand?
• Is there anything that can be done to reduce
uncertainty thereby reducing inventory?

Distribution Strategies –
• Relationships between suppliers and
warehouse operators that specify delivery
lead times, appointment processes, and hours
for receiving.
• How can this relationship optimize supply
chain efficiency?

Supply Chain Integration and Strategic
Partnering –
• information sharing and operational planning
are keys to successfully integrated supply
chain.
• But what info. will be shared?
• How will it be used?
• What level of integration is needed?
• What partnerships can be implemented?

• Product Design –
• Effective design, in particular an unified case code number,
plays several critical roles in supply chain efficiency.
• Not having an unified case code number creates, complicated
production, increases inventory holdings at the vendors
facility, delays delivery to the warehouse and if received
incorrectly delays delivery to the stores.
• What role does supply chain management play in
implementation of product design to simplify production
requirements and reduce lead-time for inventory
replenishment?

Customer Value –
• Measure of a company’s performance to its
customer, based upon the entire range of
products, services, and intangibles that
constitute the company’s offerings.
• Effective supply chain mgt. is critical if OUR
objective is to fulfill the ultimate consumer
needs and provide value.

Information Technology and Decision-Support
Systems –
• much of the current interest in supply chain mgt. is
motivated by the opportunities that appeared due to
the abundance of data and the savings that can be
achieved by sophisticated analysis of these data.
• But what data should be transferred? Which are
significant ? How should data be analyzed and used?
Impact of the Internet? What infrastructure is
required internally and between partners?

Supply-Chain Management
Important activities include determining
1. Transportation vendors
2. Credit and cash transfers
3. Suppliers
4. Distributors and banks
5. Accounts payable and receivable
6. Warehousing and inventory
7. Order fulfillment
8. Sharing customer, forecasting,
production information

The Strategic Importance
of the Supply Chain
•Supply-chain management is the integration of the
activities that procure materials and services,
transform them into intermediate goods and the
final product, and deliver them to customers
•Competition is no longer between companies; it is
between its supply chains

Supply Chain Goals
Efficient supply chain management must
result in tangible business improvements. It
is characterized by a sharp focus on
– Revenue growth
– Better asset utilization
– Cost reduction.

Benefits of
Common Benefits
of Supply Chain
Management
Reduced Costs
Improved Service
Enhanced Revenues

Supply chain managemenPPT MBA 4 SEM

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Similar a Supply chain managemenPPT MBA 4 SEM

Similar a Supply chain managemenPPT MBA 4 SEM (20)

Más de Babasab Patil

Más de Babasab Patil (20)

Último

Último (20)

Supply chain managemenPPT MBA 4 SEM